Business
Pixar needs original animated hits. They're much harder to come by at the box office
For decades, Pixar could hardly miss with its original animated films.
Whether the subject was toys, fish or a cantankerous old man, the Emeryville-based computer animation studio churned out hit after hit.
But since the COVID-19 pandemic, Pixar and other animation studios have struggled to break through at the box office with the same kinds of original movies that defined the industry. Instead, sequels such as “Inside Out 2” have ruled the genre.
This weekend, Walt Disney Co.-owned Pixar will face its latest test with the release of “Elio,” an original film about a young boy who seeks connection with aliens to make up for his loneliness on Earth.
The movie is tracking to bring in $18 million to $25 million in ticket sales from the U.S. and Canada during its opening weekend, according to box office analysis. (The film’s reported budget is in the range of $150 million to $200 million.)
That would be considered a soft debut by Pixar standards, indicating the dilemma the animation business — and the movie industry writ large — faces with original content. While audiences often say they want to see new stories, box office ticket sales show they gravitate toward sequels, reboots and other familiar fare.
“You need to be launching new franchises to keep the pipeline fresh,” said Doug Creutz, senior media and entertainment analyst at TD Cowen. “Since the pandemic ended, original animated films have just been getting killed at the box office … no matter how good they are.”
Pixar executives, nonetheless, say they’re committed to telling original stories, which are key to the future health of the industry.
“You wouldn’t have Pixar without ‘Toy Story,’ our first original film 30 years ago!” Pixar Chief Creative Officer Pete Docter wrote in an emailed statement. “And while we also love digging into new layers of familiar worlds and characters through our sequels, I’d say there’s a unique thrill in unearthing a new story.”
Disney and Pixar’s previous original movie “Elemental” made just $29.6 million in its opening weekend in 2023, causing many in the industry to write it off as a flop, before strong word-of-mouth reviews propelled the film to a solid worldwide gross of $496 million.
Sister studio Walt Disney Animation Studios has also recently struggled with originals, including 2022’s “Strange World” and 2023’s “Wish.”
The pandemic had a major effect on theatrical attendance for animated films. At the onset, studios including Pixar put their new animated movies on streaming services to give families something to watch during the COVID-19 stay-at-home orders and keep people from spreading the disease.
Movies such as 2020’s “Soul,” 2021’s “Luca” and 2022’s “Turning Red” were all sent straight to the Disney+ streaming service. Despite critical acclaim — winning an Academy Award for animated feature — “Soul” grossed just $121.9 million in worldwide theatrical revenue.
Even when movie theaters started reopening, families were slow to return due to health concerns and familiarity with watching movies at home, which dented animated films’ box office potential. Pixar’s 2022 “Toy Story” spinoff “Lightyear” did poorly at the box office partially due to this timing, as well as quality issues, marketing challenges and right-wing backlash to an on-screen kiss between a same-sex couple.
Other studios, too, face challenges with originals.
Universal Pictures’ 2023 original animated movie “Migration” also saw a soft box office total. The same year, Universal grossed more than $1 billion from “The Super Mario Bros. Movie,” based on the Nintendo game franchise.
Last year, Universal’s “The Wild Robot,” which is adapted from a 2016 children’s book, debuted to strong reviews, but grossed $333 million in box office revenue, compared with the $492 million reaped by Paramount Pictures’ “Sonic the Hedgehog 3.”
Now family films are ruling the box office.
So far this summer, many of the films that have propelled the box office are family-friendly — Warner Bros. Pictures’ “A Minecraft Movie,” and live-action remakes “Lilo & Stitch” from Disney and “How to Train Your Dragon” from Universal.
Last year, Pixar’s “Inside Out 2” hauled in nearly $1.7 billion in global box office revenue last year, while Universal and Illumination Entertainment’s “Despicable Me 4” grossed $969.6 million worldwide and Disney’s “Moana 2” made $1 billion.
The common denominator among these films? They’re all sequels, reboots or rely on known intellectual property.
But industry insiders and analysts say that simply focusing on new chapters of existing stories risks making the animation space stale.
“If you’re trying to grow the business, you need new content, you need new franchises, you need new things for people to be excited about,” said Creutz of TD Cowen.
But beyond the box office, Pixar original films can get exposure — and drive business — through other parts of the Disney empire. Movies eventually debut on Disney+ and characters will show up on merchandise or in the theme parks, which can expand a film’s reach.
“Pixar is in the long-term business,” said David A. Gross, who writes a movie industry newsletter. “They want to create stories that last, and if that works in bringing back a sequel, great, but there is enormous value for streaming for these pictures, whatever they do in theatrical. There are a lot of revenue streams.”
Pixar intends to release three movies every two years, and the company’s strategy is to make one original for every sequel, company sources said. For instance, “Elio” was intended for release in 2024, but was delayed by the dual writers’ and actors’ strikes of 2023. Instead, it swapped with “Inside Out 2” since sequels can be easier to move through the production process due to existing assets.
“Pixar was really instrumental in defining the look and the feel and the tone of computer-animated films,” said Christopher Holliday, a senior lecturer in liberal arts and visual cultures education at King’s College London, who wrote a book about computer-animated films.
The company “is now at one of those crossroads where they are trying to balance films that have an audience built into them,” Holliday said. “And then they’re also balancing their identity as a studio of innovation that is pushing the boundaries and the limits of computer animation.”
Next year, Pixar plans to release “Toy Story 5” as well as an original film called “Hoppers” about a new technology that allows humans and animals to communicate. In 2027, Pixar said it will debut “Gatto,” an original movie about a cat with multiple lives.
“We think audiences love originals too,” Docter said. “Sure, it might be a bit harder nowadays to break through all the noise out there, but if we do our jobs, and create something that people will love, we trust that audiences will show up.”
Business
Rent-hike ban to protect fire victims ends despite gouging concerns
A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.
The executive order that blocked rent increases was issued by Gov. Gavin Newsom amid the devastating wildfires last year. Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.
The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes. Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.
“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said. “Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”
Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule. There are already stricter rent increase caps for many residences, depending on the location, type and age of the building. Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.
It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed. But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.
Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.
“I abstained because I did not see sufficient evidence to justify extending this emergency ordinance, nor did I see evidence to eliminate it entirely,” Hahn said.
Barger’s office said she supported allowing the protections to sunset while waiting to see whether new information emerged.
“Market data already shows countywide rents are only about 2% above pre-emergency levels and rental inventory has grown,” Barger representative Helen E. Chavez Garcia said. “The Supervisor is also mindful of the burden these ongoing protections place on small property owners throughout the county.”
Mitchell did not immediately respond to a request for comment.
There haven’t been steep rent hikes in neighborhoods within three miles of the Palisades fire, according to a Times analysis of data from Zillow, the property listing company.
In ZIP Codes within three miles of the Palisades fire, rent increased 4.8% from December 2024 to April 2025. In areas around the Eaton fire, which destroyed swaths of Altadena, rent jumped 5.2% in the same period.
In L.A. County, ZIP Codes farther from the fires saw only about a 2% increase.
A landlords representative, Jesus Rojas of the Apartment Owners Assn. of Greater Los Angeles, told the supervisors during public comment at the meeting that the county’s rent-gouging rules have “long outlived the emergency they were intended to address” and are now being “wrongfully used to harm thousands of rental housing providers throughout the county.”
“There is no proof that multifamily rental housing providers are hugely increasing rents for impacted homeowners,” Rojas said.
Indeed, there are strong signs that the property market in the Los Angeles area has at last begun to cool.
L.A. metro-area rent prices recently fell to a four-year low, with the median rent slipping to $2,167 in December.
Meanwhile, condominium sales had their slowest start of the year in decades. Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February — the worst start to the year since 2005.
Newsom defended the price-gouging protections shortly after they went into effect.
“In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation,” he said in February 2025. “The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors.”
The Los Angeles County Department of Consumer and Business Affairs said it received more than 2,000 complaints after the fires, alleging that retailers and landlords were taking advantage of people put in hardship by their losses, and sent out more than 2,000 cease-and-desist letters to businesses and landlords for alleged price gouging, said Morine Merritt, who oversees department investigations into consumer and real estate fraud.
“Close to 90% of the complaints that we received involved allegations of rent increases,” Merritt said in an interview. Now that the fire-related protections have expired, existing laws and “regular market conditions determine price increases for goods and services, including rents,” she said.
Crackdowns on fire-related rent gouging have been rare, said Chelsea Kirk of the activist organization the Rent Brigade, which analyzed L.A. County’s rental market in the year after the fires. It reported 18,360 potential examples of price gouging in listings but said that few lawsuits had been filed by authorities so far.
Last week, Rent Brigade announced what it said was the first private civil lawsuit brought by a family that claimed to be rent-gouged in the aftermath of the wildfires. Plaintiffs Randall and Candy Renick, whose Altadena home was damaged, said they were charged nearly three times the maximum permitted rate for nearly 10 months. They seek restitution of $96,000 plus civil penalties and attorneys’ fees.
The rental market has probably stabilized since the fires, Kirk said, but other families may still be “locked into illegal rents” that they agreed to pay when they were in a rush to find housing after they were displaced.
Business
Read Nick Bilton’s Letter to Scott Pelley
Dear Mr. Pelley:
I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.
Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.
Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.
Sincerely,
Nick Bilton
Executive Producer, 60 Minutes
Business
Aspiration co-founder sentenced to 14 years for fraud
The co-founder of Aspiration, Joseph Sanberg, was sentenced to 14 years in prison on Monday after defrauding investors and lenders of over $248 million.
The startup, an eco-friendly digital banking company boasting fossil fuel-free investments, carbon offsets for gas purchases, and a debit card with cash-back benefits for shopping at clean companies, was founded by Sanberg and Andrei Cherny. Cherny left the company in 2022 and has not been charged.
Sanberg, an Orange County native, pleaded guilty to wire fraud in October after being arrested in March last year. Aspiration subsequently filed for bankruptcy and liquidated all of its assets by July.
Sanberg and venture capitalist Ibrahim AlHusseini, who also faces charges, together forged a series of bank statements in order to obtain loans. From 2020 to 2021, the pair forged AlHusseini’s bank statements to show millions of dollars in assets in order to obtain millions of dollars from lenders.
Additionally, they forged a letter from their audit committee stating that $250 million in funds were available, when in reality Aspiration had less than $1 million. The amount of loans defrauded exceeded $248 million.
In 2021, Sanberg artificially inflated Aspiration’s 2021 revenue by $44 million by recruiting 27 fake customers to sign letters of intent pledging tens of thousands of dollars per month for tree planting services. Sanberg himself funded the contracts and used the inflated revenue numbers to obtain more loans.
The charges sparked an NBA investigation into salary cap allegations due to Aspiration’s connections with Clippers owner Steve Ballmer.
Ballmer personally invested $60 million in Aspiration, all of which was lost. He is now the target of a civil lawsuit alleging his participation in the scheme. Ballmer denies the allegations.
The team announced a $300-million sponsorship deal with Aspiration, and Clippers player Kawhi Leonard signed a four-year, $28-million marketing contract with the company, which reportedly performed no duties. The issue has raised concerns about how players are circumventing the NBA’s salary cap.
The team lost the $300-million sponsorship deal and an additional $20 million paid for carbon offset purchases.
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